(Reuters) -Shopify forecast third-quarter revenue above market estimates on Wednesday as demand from retailers for its e-commerce services remains strong despite tariff-related jitters, sending its U.S. shares up 16% premarket.
The upbeat forecast comes as a welcome sign after investor concerns around President Donald Trump’s shifting trade policies that have left many retail businesses unsure about demand, production, sourcing, and the costs of running their operations.
Shopify has previously said sellers were still signing up for its services, as the company also benefits from investments in artificial intelligence-powered features to help merchants with tasks such as building store websites, generating images and discount codes, and collating sales data.
E-commerce giant Amazon had also reported strong retail results last week, saying it was yet to see a demand drop or a notable rise in prices.
In the April-June period, Shopify saw revenue growth rates accelerate across regions including North America, Europe, and Asia Pacific, quarter-over-quarter, the company said.
Shopify said in May the expiration of de minimis in the U.S., a trade exemption that allowed sellers to import low-cost goods from China tariff-free, would not impact the company notably. Only 1% of its overall gross merchandise volume – or the total value of products sold on the platform – is related to China.
The Ontario, Canada-based company expects revenue to rise at a mid- to high-twenties percentage rate in the July-September quarter, while analysts on average estimated a rise of 21.54%, according to data compiled by LSEG.
For the second quarter, Shopify reported revenue of $2.68 billion, up 31% from last year and above analysts’ average estimate of $2.55 billion. Gross merchandise volume jumped to $87.84 billion from $67.25 billion last year.
(Reporting by Deborah Sophia and Kritika Lamba in Bengaluru; Editing by Arun Koyyur and Devika Syamnath)
